Corporate Compliance

Washington QIO reports $73,000 in unallowable costs

Healthcare Auditing Weekly, March 18, 2008

The Washington Quality Improvement Organization (QIO) submitted just over $73,000 in unallowable indirect costs for federal reimbursement from November 1, 2002, through October 31, 2005, according to an OIG audit.

The audit looked at six specified fiscal integrity areas and found $12.1 million of $12.2 million costs submitted for reimbursement appeared reasonable.

The OIG recommended the QIO:

  • Refund the $73,636 of unallowable indirect costs claimed on subcontracts
  • Reduce the modified total direct cost allocation bases by $404,302 in total for unallowable subcontract costs and the indirect cost pool by $71,741 for unallowable organization costs when finalizing the indirect cost rates with CMS

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